USDA predicts growth in U.S. livestock production

Primarily due to export demand growth, USDA last week predicted that U.S. beef and pork production will be expanding over the next few years. The report projects that U.S. red meat and poultry production will decline next year, as will domestic per capita meat consumption.

But with exports staying strong, and prices high, producers will start to expand: beef and pork production will turn upward in 2013 and continue to grow through the rest of this decade.

The USDA report sees beef cow numbers rising from about 31 million at the start of 2011, to over 34 million by 2020. The total cattle inventory will drop below 92 million head before expanding to about 96.7 million by 2020. Feed prices should decline from current levels, but will remain high, the report said.

Pork production is seen declining in 2012 in response to lower returns this year, but by 2013, producers are expected to ramp up production, as higher hog prices and lower feed costs improve returns.

Primarily due to export demand growth, USDA last week predicted that U.S. beef and pork production will be expanding over the next few years. The report projects that U.S. red meat and poultry production will decline next year, as will domestic per capita meat consumption.

But with exports staying strong, and prices high, producers will start to expand: beef and pork production will turn upward in 2013 and continue to grow through the rest of this decade.

The USDA report sees beef cow numbers rising from about 31 million at the start of 2011, to over 34 million by 2020. The total cattle inventory will drop below 92 million head before expanding to about 96.7 million by 2020. Feed prices should decline from current levels, but will remain high, the report said.

Pork production is seen declining in 2012 in response to lower returns this year, but by 2013, producers are expected to ramp up production, as higher hog prices and lower feed costs improve returns.